The Gold Industry is in a Deep State of Dysfunction, Delusion and Denial

Stewart Dougherty is back with scathing commentary about the big mining companies – Barrick, Newmont, Goldcorp, etc – and their unwillingness to fight the obvious intervention in the gold and silver markets by western Central Banks and Governments.

While the Fed and other Deep State puppets have floated subtle memes that there is a noble purpose behind the control of gold, such as to support the dollar and preserve confidence in their (disintegrating) financial and monetary system, these are nothing but contrived and coagulated lies designed to cover up the biggest financial crime in history. – Stewart Dougherty

In 1980, the Financial Deep State realized that there existed an extraordinary opportunity for serial plunder and profiteering: the manipulation of the gold and silver markets. They immediately mobilized to exploit it.

During the subsequent 37+ years (we are now well into the 38th), the Deep State manipulators have criminally looted the gold and silver markets, pocketing astronomical profits for themselves in the process, all of which have come from real victims on the other sides of their fraudulent trades. While literally billions of people worldwide have been financially damaged by this crime, many of them severely, not one of the perpetrators has spent so much as ten seconds in jail for the global looting spree they have conducted. This is because precious metals price fraud is a state-sponsored crime.

While in this article we will concentrate on gold from here on, the exact dynamics we describe also apply to silver. The only difference between the two is that the price carnage in silver has been far worse than it has been in gold, on a percentage basis.

As a consequence of the unrelenting gold price manipulation, gold has been thrust into two severe bear markets that have lasted for more than 27 of the past 37 years, or more than 72% of the time.

The first bear market ran from 1980 until 2001, during which the gold price was savaged from $850 to $250 in nominal dollars, a plunge of 71%. Inflation-adjusted to today’s dollars, the carnage was even worse: it collapsed from $2,674 to $344, an 87% implosion.

In 2001, in the midst of unprecedented (at the time, but far worse now) economic, financial and monetary pressures, gold embarked on a ten year rise to a nominal (although not inflation-adjusted), all-time high of $1,925. The Financial Deep State had its hands full then with other, more pressing matters (such as keeping its global financial and monetary Ponzi schemes from disintegrating), and was forced to take its eyes off of the gold ball. It is impressive what gold can do when it is freed from the chains of greed, looting, and official corruption.

By 2011, after employing its signature techniques, including rampant counterfeiting and reporting fraud, the Deep State had returned the errant financial genies to their poison bottles, and was able once again to focus its attention on its favorite, most profitable crime: precious metals price rigging.

For the 6+ years since, gold has been slammed into a second major bear market, during which its price has been crushed from $1925 to $1050, a collapse of 45%. It has recovered somewhat to $1210 at the time of this writing.

During the entire 37+ year period, and particularly during the 27+ years of outright price annihilation, the major gold miners have done precisely nothing to expand the market for physical gold via advertising, direct marketing or any of the other proven demand-creation techniques. They have also done nothing to support gold’s price in any way, or to take action against the criminal price manipulators.

The industry’s sole innovative effort during this period was to have its association, the World Gold Council, get behind a gold ETF, GLD. The management of this ETF was…

Dave: Thanks. What we see is the steady, deliberate, systematic impoverishment of the people, so that they become helpless and completely dependent upon the crumbs periodically tossed their way by the state. Weak, hopeless, destroyed.

Dougherty calls it like it is ! Maybe the miners will go to war with the financial deep state using their picks and shovels since management of these mining companies are asleep at the wheel. Great article, welcome back Stewart !

Chris: Thanks for your message. Collusion seems to be the only logical explanation, doesn’t it. A huge conspiracy, which is exactly what one would expect given the elephantine profits involved. These people have looted a staggering sum from the PM markets for nearly 4 decades, with precisely zero push back whatsoever. What a disgrace. SD

Hi Hugo. I’m very sorry to hear that you were having trouble posting your thoughts. They are always supreme. I know it can be very irritating to type a long message, and then find that it has disappeared into nothingness. It has happened to me, too, on various sites. Very disappointing. I hope you don’t give up. Everyone loves your messages. Please feel free to ask Dave for my info. It would be great to hear from you. Best, Stewart

Thanks for your kind words. Fortunately I saved the post, a habbit I learned the hard way after losing posts (smile). I e-mailed Dave my post and asked him if he would forward it to you. It basically offers a reason (based on the autobiograpy of mr Munk, the founder of Barrick) why the goldminers and gold council do what they do.
Regards,
Hugo

Thanks, John. Great link. And you’re right on the money; that’s where we are headed. A well-connected Danish banker recently said that “all the misery in the world is a business plan,” and boy, did he ever nail it with that one. Every single thing being done to us right now by our “representatives” is FOR PROFIT, FOR THEM. Simple as that. Thanks again, SD

Great article Stewart, but almost as if you’ve had to admit the psychopath crooks won, which sadly they have, short term here, and many of us didn’t get into PMs early enough to still be above water. Sure, we’re “prepared” with some “insurance” but what if its a slow bleed monetary death instead of a quick crash and reset? I was buying from 2010 until 2011, then added as silver got down to 20 & 18, but I need to make some $ for my retirement so have been selling some of my stack for other investment opportunities, which include a biotech play, 3 weed plays, some crypto, and a few of Dave’s short ideas. I know quite a few “millenials” and educating enough of them about sound money to help get a wave of interest building in the PM space, I’m not optimistic. And where’s the signal failure from all the eastern physical buying, still waiting for that, logically will happen at some point. Just my train of thought this morning.

Thanks, Andrew. Very perceptive and accurate commentary from you. My research with millenials is extremely concerning. They are so completely clueless about money and monetary / fiscal policy that it’s almost unbelievable. I’m very close to regarding them as a “Lost Generation.” But their naivete is understandable, too. Their entire lives, they have deliberately been educated in ignorance by the state. It was decided that they shall be stupid about these matters, and they are. Pure Lenin: “give me a child for a year, and I will control their thinking for life.” (That’s a paraphrase, but it’s close to the actual quote.) Regarding the so-called “signal failure” caused by eastern buying, again, very perceptive. Where is it??? Just more useless bloviation. People simply do not understand the power of paper manipulation. It’s worked for the DS for 37+ years, and it will work for the next 37 unless something big changes. I’m so sick and tired of the pundits’ pie in the sky price projections that never even come close to happening, I can’t tell you. Am going to do a specific article on this. Make sure your fire extinguisher is at the ready to protect your computer screen when it comes out! No prisoners! Cheers, SD

sorry, a few more thoughts… if I had to bet on it, we get a slow decades long bleed to authoritarian monetary tyranny where less and less people live comfortable “middle class era” lives and more and more suffer along, poor and on the dole, kind of like the film ‘Looper’ ~ maybe PMs are black market by then. It’s already happening here in Seattle, tent cities everywhere, mostly along freeway overpasses. There was a huge tent city, garbage everywhere, next to Safeco Field, where the Mariners play, I wrote the mayor and asked why such an eyesore is allowed next to a so-called symbol of civic pride. A week later the cops and city crews vaporized it, but only because baseball season was about to begin.

Exactly. Manufactured misery for the people. The only difference I see is that they won’t be able keep this together for much longer. They’ve shot that wad. To me, it starts to get out of control from here. Chicago, Venezuela. Those will become the benchmarks, and they’ll be far surpassed. Not good. SD

Hi. My focus was on the “west,” which includes North and South America, Europe, Australia and New Zealand. The dynamic in the “east” is very different. If the west were ever to emulate the east, gold would be $100,000 per ounce and the Crimex would be an obliterated joke.

Hi. Yes, absolutely. They are a big part of it. This looting has been going on for a very long time. Just ask yourself this: if you could loot $100,000,000.00 per day from a system, day in and day out, year in and year out, and never face any consequences whatsoever, despite its complete illegality, would you ever let that stop? People with morals would never do it in the first place, so those are not the people we are asking to stop it. The people who do it couldn’t care less what kind of financial carnage they create, and they will never, ever stop. That’s the big problem. The carrot is the size of an elephant, and there is precisely nothing that stops them from getting to and eating it. This is why millions more fall into financial distress every year. The economy is being looted to destruction. Regards, SD

Couldn’t agree more. I admit, I have not read much into the Pilgrims Society since it seemed odd for anyone to focus exclusively on trashing silver. In retrospect, considering silver’s many industrial and military uses…perhaps it does make sense. If your goal is to take over the world, then looting the silver stockpile would be almost essential. Time to pick up some books again.

Quran 17.2 We gave unto Moses the Scripture, and We appointed it a guidance for the children of Israel, saying: Choose no guardian beside Me.
17.4 And We conveyed to the Children of Israel in the Scripture that, “You will surely cause corruption on the earth twice, and you will surely reach [a degree of] great haughtiness.
17.5 So when the time for the first of the two came, We roused against you slaves of Ours of great might who ravaged (your) country, and it was a threat performed.
17.6 Then We gave back to you a return victory over them. And We reinforced you with wealth and sons and made you more numerous in manpower
17.8 It may be that your Lord will have mercy on you, but if ye repeat (the crime) We shall repeat (the punishment), and We have appointed hell a dungeon for the disbelievers.

They already are doing that by refusing to market their product to domestic audiences, as Dave and Dougherty said. And THAT refusal tells you everything about who they really work for. China is the U.S.’s biggest creditor and sells us actual wealth in exchange for useless fiat. You don’t have to be a genius to realize that they want real wealth back with interest. Otherwise, it’s lights out. I strongly suspect many in Washington know that this can’t go on forever, and are desperately trying to focus the MIC to subjugate the East. Problem is, we have no manufacturing base for a protracted war, let alone nuclear armageddon…and probably little, if any, stock in precious metals. For all the problems China’s economy has…they’re in a fantastic position to “rescue” the U.S. when it’s currency goes to crap. Think IMF post Soviet collapse…but with a vengeance. That’s my theory about what’s about to go down at least.

BTW, the American consumer is willfully complicit. We pay ridiculously high prices for jewelry for the PM purity they posses, while scoffing at bullion that is comparitively cheap. Example: many silver necklaces are no better than a silver round with a drilled hole and chain strung through it…yet the price is multiples higher. Silver beads that are a quarter of an ounce sell for double a troy ounce round, etc. It’s completely bonkers, yet nobody seems to care. Americans think gold and silver are pet rocks…yet will pay up the nose just to wear them. Truly, Sodam and Grammora revisited.

Great article! I am curious if the shareholders of these mining companies can attempt to force these CEO’s and executives to take action and stop this manipulation? It seem to me that we are the ones who will need to force this issue! How can we bank together and stop this corruption? I personally am disgusted with all of the corruption that exists in this world and this gold and silver manipulation is a significant manipulation that allows all of the other corruption to continue. After all with gold suppressed and never being allowed to find true price discovery the man made debt based fiat system continues. We must begin to fight back for justice to prevail!